channel management

Channel Management

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A path through which goods and services flow in one direction (from vendor to the consumer), and the payments generated by them that flow in the opposite direction (from consumer to the vendor).

Channel

The total number of channel members in a channel of distribution

Channel length

Businesses or individuals who assist in moving goods and services from the producer to the consumer

Channel members

Distribution Patterns

A distribution pattern in which a producer sells a product through just one middle man in a geographic area

Exclusive Distribution

A producer sells a product through a limited number of middlemen in a geographic area.

Selective Distribution

Producer sells a product through every available wholesaler and retailer in a geographic area where consumers might look for it

Intensive Distribution

Channel Functions

Companies rely on market research to determine their target markets’ needs and wants.

Providing Marketing Information

Costs and responsibilities can be shared. Promoting Products

Offering to deliver and install products. Negotiating with Customers

Selling large quantities of products to wholesalers and retailers

Reducing Discrepancies

Work together to finance activities to become more effective

Financing and Risk-taking

Horizontal vs. Vertical Conflict

Horizontal Conflict: Occurs between channel members at the same level Ex: two retailers selling pet supplies compete to sell to the same target market

Vertical Conflict: Occurs between channel members at different levels within the same channel Producers and wholesalers or producers and retailers